Simplified Prospectus

Transcription

1 Simplified Prospectus UK Growth & Income Fund Child Trust Fund (CTF) Accumulation Share Class 1 September 2009

2 2 Simplified Prospectus Simplified Prospectus of the UK Growth & Income Fund Child Trust Fund (CTF) Accumulation Share Class ( the Fund ) How to contact us If you have any questions or need to contact us at any time, you can phone or write to us. Call us on (textphone ). Lines are open 8am to 6pm Monday to Friday (excluding public holidays). To help us continually improve our services and in the interests of security, we may monitor and/or record your communications with us. Write to us at: HSBC Trust Company (UK) Limited, Exchange Place, Poseidon Way, Warwick CV34 6BY. Throughout this document you will see this symbol when you can telephone us, or when you can write to us. Please refer back to these contact details. What is the aim of this document? This document contains important information about the Fund. Its aim is to help you make an informed decision about whether the fund into which the HSBC CTF invests is suitable for you. The Fund is a sub-fund of HSBC Investment Funds OEIC ( the OEIC ) which is an umbrella scheme containing 6 sub-funds. This OEIC is registered in England and Wales, under Registration number IC73. We risk rate our funds as either Cautious, Balanced or Adventurous and have rated the UK Growth & Income Fund as a Balanced fund. This is because it invests across a wide range of different investments with the aim of mitigating any risks. } Cautious funds tend to be less risky than Balanced funds and Adventurous funds tend to be more risky than Balanced funds. } The Fund is designed specifically for the CTF Provider, which is HSBC Trust Company (UK) Limited. } This document does not constitute investment advice and if you have any doubts about the suitability of this Fund for your CTF you should seek financial advice. What are the risks of the Fund? } The investment is not guaranteed. } The value of the investment and any income accumulated can go down as well as up and may fall below the amount put in. } Charges are taken from the capital of the Fund and this may restrict the growth of the investment. } The fund may invest in Corporate, Government or Local Government Bonds. The performance of bonds, gilts and other fixed interest securities tend to be less volatile than those of shares of companies (equities). However there is a risk that both the relative yield and the capital value of these may be reduced if interest rates go up. } As the Fund invests predominantly in the UK, any decline in the UK economy may affect the prices and value of the shares held by the Fund. These risks are also described in the relevant full company prospectus. Copies of the full company prospectus are available free of charge on request. What is the objective of the Fund? } To provide long term capital and income growth by investing predominantly in the UK. What is the policy of the Fund? } To invest predominantly in UK equities, fixed interest and other securities. The Authorised Corporate Director (ACD) may also invest at its discretion in other transferable securities, money market instruments, deposits, cash and near cash and collective investment schemes. Can I invest in the Fund, outside of the Child Trust Fund? } No, the Fund is only available for investment within the HSBC CTF as it has been designed specifically for that purpose.

3 3 Can I change funds? } No, the HSBC CTF only invests in this Fund. How will investments into the Fund be made? } The CTF Provider will make all the investments on your behalf. No share certificates will be issued. How is the Fund valued? } The valuation and share price is based on the assets of the Fund. The shares are valued daily at 12 noon on each business day. A full explanation of how the share price is calculated is given in the full company prospectus for the OEIC. If you would like to obtain a copy (free of charge) please write to us or call us. How can I find out the share price of the Fund? } Fund prices are published on the internet; visit www. assetmanagement.hsbc.com, select Individual Investors and click on Funds & Prices. To look up a price and calculate the value of the shares held in the Investment Account, look up the Fund name - HSBC UK Growth & Income Fund, then look at the CTF Accumulation Share Class to obtain the correct price and multiply this by the number of shares held. } Alternatively, you can call us for up-to-date prices or an up-to-date valuation. Will tax be paid on the Fund? } The Fund will be subject to Corporation Tax. The income available for accumulation is calculated after this tax is paid. } This information is based on our understanding of current UK Tax law and HMRC practice, which may change over the lifetime of the HSBC CTF. Stamp Duty Reserve Tax (SDRT) } On certain dealings in shares in an OEIC, SDRT may be payable. SDRT is a tax that is usually charged to the Fund and becomes payable where there is a transfer in beneficial ownership of shares. In general a 0.5% SDRT charge applies to the Fund on the value of shares surrendered, and can be reduced by certain other factors. } Where an investor places a large deal, which is a deal having a consideration of 15,000 or more, a direct charge equivalent to the amount of SDRT suffered by the Fund on that deal may be levied on such an investor. } It is not possible to accurately predict how frequently this direct charge will be passed on to the investor as it is directly related to inflows and outflows of monies from the Fund but when payable the amount payable will not exceed 0.5 percent of the value of the shares transferred. Annual Management Charge (AMC) How are charges taken? } An Annual Management Charge (AMC) 1.5% is payable to the ACD of HSBC Investment Funds OEIC of which the Fund is a sub-fund. } The amount of the charge is calculated based on the daily valuation of the Fund. The charge is then taken from the capital of the Fund on a monthly basis. You will not see this charge shown on a statement as it is reflected in the price of the shares rather than being taken from each individual s investment. } The ACD will pay the CTF Provider 67.5% of the AMC, based on the value of the Shares held in the Fund, for arranging the purchase of shares in the Fund. These payments will be made monthly to the CTF Provider. } Occasionally, the ACD or the CTF Provider may also benefit from other non-financial incentives, such as corporate hospitality and training. We maintain strict policies to control how benefits of this type are managed

4 4 to protect the interests of customers. Please refer to the full company prospectus for the OEIC, copies of which are available (free of charge) on written request or by calling us. Total Expense Ratio (TER) } Sometimes the annual operating costs of a fund are described as its Total Expense Ratio ( TER ). As no other charges or expenses are made in respect of the HSBC CTF Fund, the only cost is the AMC and the TER is therefore 1.5%. All European-based funds publish a TER figure to help you compare charges. Portfolio Turnover Rate } The Fund s Portfolio Turnover Rate is 95%. This is a measure of how much buying and selling the fund is doing. Further details of the AMC, Dilution Levy and SDRT can be found in the full company prospectus of the OEIC, which is available on request. } Please refer to How will charges and expenses affect the HSBC CTF? in the Key Features document for further information on charges. Dilution Levy } In certain circumstances, for example when there is a large purchase or sale or a series of purchases or sales typically representing more than 2% of the value of the Fund, the quoted price of the shares of the Fund may not reflect the actual price the Fund has to pay or receive in order to purchase or sell the underlying assets. This effect is known as `dilution and we have the ability to charge a dilution levy. } While it is not our intention to charge a dilution levy, we reserve the right to protect our existing shareholders from circumstances that would adversely affect the value of the Fund. Full details of the circumstances in which a dilution levy may be charged are given in the full company prospectus. } Please be aware that it is not possible to accurately predict whether dilution will occur at any particular time. } We will not benefit from applying a dilution levy or dilution adjustment as they serve only to protect the continuing investors in the Fund.

5 5 Historical Fund Performance The Fund was launched on 18 April 2005 Please note that past performance is not an indicator of future returns. Annual Cumulative % Change % Change /06 06/07 07/08 08/ year 2 years 3 years 4 years The graph above shows fund performance, measured from 1 July to 30 June, for the last 4 years. The graph above shows cumulative fund performance, measured to 30 June, for the last 4 years. This information has been taken from Morningstar, an independent data source. The Fund performance has been calculated directly from the single-price of the HSBC UK Growth & Income Fund CTF Accumulation Shares. More recent performance information may be available by contacting us.

6 6 Further information Names behind the Fund Authorised Corporate Director of HSBC Investment Funds OEIC of which the HSBC UK Growth & Income Fund is a sub-fund HSBC Global Asset Management (UK) Limited, 78 St James s Street, London SW1A 1EJ. Registered office: 8 Canada Square, London E14 5HQ. HSBC Global Asset Management (UK) Limited is authorised and regulated by the Financial Services Authority. It is entered on the Financial Services Authority register as number You can check this on the Financial Services Authority register It is also a member of the Investment Management Association. Its principal business activity is to act as an investment manager and adviser and as Authorised Corporate Director for a range of Open-Ended Investment Companies and Manager for a range of Unit Trusts. Depositary State Street Trustees Limited, 525 Ferry Road, Edinburgh EH5 2AW. State Street Trustees Limited is authorised and regulated by the Financial Services Authority and is entered on the Financial Services Authority register as number You can check this on the Financial Services Authority Register Custodian HSBC Bank plc, Institutional Fund Services Europe, Mariner House, Pepys Street, London EC3N 4DA. HSBC Bank plc is authorised and regulated by the Financial Services Authority and is entered on the Financial Services Authority register as number You can check this on the Financial Services Authority Register Regulator HSBC Investment Funds OEIC is authorised and regulated by the Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS. Telephone: consumerhelp@fsa.gov.uk. Prospectus and further information The Fund is a sub-fund of HSBC Investment Funds OEIC. The full company prospectus for this OEIC is available at any time upon written request or by calling us. Reports and Accounts for the OEIC are issued twice a year. If you would like to receive a copy please write and let us know. We may make a charge for this service. Any other information about this OEIC is available at any time upon written request or by calling us. Auditors KPMG Audit plc, Saltire Court, 20 Castle Terrace, Edinburgh EH1 2EG.

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8 hsbc.co.uk Issued by HSBC Trust Company (UK) Limited, We are a member of the HSBC Group, one of the world s largest banking and financial services organisations with around 9,500 offices in 86 countries and territories. HSBC Trust Company (UK) Limited, Exchange Place, Poseidon Way, Warwick CV34 6BY. BBCOMP3 MCP /09 HSBC Trust Company (UK) Limited and HSBC Global Asset Management (UK) Limited All Rights Reserved.